Electric vehicle (EV) makers are facing a growing set of challenges. EV maker Lucid Motors’ latest earnings call put those struggles under the spotlight. While Lucid saw record production and deliveries in Q2, its interim CEO Mark Winterhoff noted that trade policies, tariffs, and supply chain disruptions have weighed heavily on the company’s financials, including a larger-than-expected quarterly loss.
One of the key stress points is China’s dominant role in the EV supply chain. While Lucid managed to avoid production stoppages thanks to quick moves by its engineering team, Winterhoff admitted that raw material access, particularly magnets and rare earths, remains a major concern. These concerns can be seen across the board among EV carmakers. To mitigate risk, Lucid has started sourcing materials outside of China, investing in alternative chemistries, and tapping into new suppliers.
This backdrop illustrates why EV supply chain companies, from battery manufacturers and rare earth producers to chipmakers and material suppliers, could offer robust returns. These are the hidden enablers of the EV boom, and many stand to benefit regardless of which automaker leads the race. In this article, we highlight 10 best electric vehicle supply chain stocks to buy right now.
Our Methodology
To compile our list of electric vehicle supply chain stocks with long-term upside potential, we referred to various ETFs and financial media articles related to the EV supply chain. We sorted the final list in ascending order of hedge fund sentiment as of Q2 2025. We broke ties with the market caps of the stocks.
Note: All data was recorded on September 5, 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is straightforward: our research has demonstrated that we can outperform the market by replicating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10 Best Electric Vehicle Supply Chain Stocks to Buy Right Now
10. Microvast Holdings, Inc. (NASDAQ:MVST)
Number of Hedge Fund Holders: 11
Market Cap: $821.28 million
Microvast Holdings, Inc. (NASDAQ:MVST) is one of the best electric vehicle supply chain stocks to buy right now. Microvast Holdings, Inc. (NASDAQ:MVST) reported Q2 of Fiscal Year 2025 on August 11. The lithium-ion battery maker posted EPS of $0.05 per share compared to the Wall Street expectations of $0.01 per share. The company reported record revenue of $91.3 million, a modest 9.2% increase year-over-year. The company also expanded its gross margins to 34.7%, from 36.9% in the previous quarter and 32.5% in the same quarter last year.
Adjusted net profit came in at $16.3 million, and adjusted EBITDA reached $25.9 million, a major comeback from losses in the previous year. Operating expenses dropped heavily due to cost controls and lower share-based compensation, the company said.
Microvast Holdings, Inc. (NASDAQ:MVST) is also making a big push in battery innovation, especially with its solid-state battery technology, which charges faster, is safer, has a longer lifespan, and is smaller and lighter compared to regular batteries.
The company continues to expand globally, with revenue growth in the U.S., EMEA, and APAC regions. It is also adding new production capacity in China to meet rising demand. The company expects its Phase 3.2 expansion in Huzhou, China, to start initial production later this year. This would boost annual battery production capacity by about 2 GWh.
Meanwhile, the company reported a positive cash flow of $44.3 million and has a cash balance of $138.8 million. The management noted that the company is focused on innovation, efficiency, and long-term profitability. The company is targeting 18%-25% year-over-year growth, which corresponds to a full-year revenue range of $450 million to $475 million.
The stock is trading at a forward P/E of 13.32x, which is cheap given its growth projections. The company’s revenue is expected to grow at nearly 27.32% on an average compounded rate annually over the next 3 years, according to Wall Street analysts. The average 12-month Wall Street upside for the stock currently stands at a staggering 113.59%, although only 2 analysts track it.
9. ChargePoint Holdings, Inc. (NYSE:CHPT)
Number of Hedge Fund Holders: 19
Market Cap: $233.33 million
ChargePoint Holdings, Inc. (NYSE:CHPT) is one of the best electric vehicle supply chain stocks to buy right now. On September 4, TD Cowen maintained its Hold rating on ChargePoint Holdings, Inc. (NYSE:CHPT), while trimming its 12-month price target from $30 all the way to $11. As of September 5, the stock was trading at $9.74, a 12.9% implied upside. The rest of Wall Street is slightly more bullish on the stock with an average implied 12-month upside of 18.24%.
The price target cut came after the company reported Q2 Fiscal Year 2026 (quarter ended July 2025) earnings on September 3. The firm noted that the company’s Q2 results saw solid execution but cautioned about the realities of the current state of the US EV market.
The EV charging company reported Q2 FY2026 results that missed EPS expectations, posting a loss of $1.42 per share vs. consensus estimates of $1.16. It generated revenue of $98.59 million, aligning with the upper end of guidance but representing a 9% year-over-year decline.
Notably, non-GAAP gross margin improved sequentially to 33%, the highest since the company went public. The company said the expansion was driven by product mix and operational efficiencies.
Despite macro headwinds, including softening U.S. EV adoption, as the TD Cowen analyst noted, and expiring tax incentives, management remains focused on long-term growth, innovation, and margin expansion. ChargePoint has now pushed out its target for achieving breakeven on an EBITDA basis beyond FY2026.
8. Magna International, Inc. (NYSE:MGA)
Number of Hedge Fund Holders: 19
Market Cap: $12.80 billion
Magna International, Inc. (NYSE:MGA) is one of the best electric vehicle supply chain stocks to buy right now. On August 26, CIBC analyst Ty Colin reaffirmed his Neutral rating on Magna International, Inc. (NYSE:MGA) and raised his 12-month price target slightly, from $46 to $47. As of September 5, the stock was trading at $45.46. The new target reflects a modest potential upside of 3.3%.
Colin pointed to a more stable outlook for the U.S. auto supply chain, noting that fears around new tariffs, particularly those tied to electric vehicle components and trade with China, have started to ease. He also noted that many of the challenges facing the auto sector, such as weaker EV demand, economic uncertainty, and ongoing supply chain issues, appear to be already factored into current valuations.
Despite this, the analyst continues to take a cautious stance. Magna’s forward P/E ratio of 9.78 might appear attractive, but that could represent a value trap given the low upside potential. Analysts may need more concrete signs of improving margins or consistent top-line growth.
7. Sociedad Química y Minera de Chile S.A. (NYSE:SQM)
Number of Hedge Fund Holders: 21
Market Cap: $12.21 billion
Sociedad Química y Minera de Chile S.A. (NYSE:SQM) is one of the best electric vehicle supply chain stocks to buy right now. On September 4, Itau BBA resumed coverage of Sociedad Química y Minera de Chile S.A. (NYSE:SQM), with an Outperform rating and a 12-month price target of $55, which implies an upside of 19.9%. As of September 5, the stock was trading at $45.87.
The firm noted that the pending regulatory measures and investment delays could drive lithium prices up over the next 12-24 months. It also cited the successful approval of the Codelco agreement as a key catalyst for the stock.
In May 2024, Minera Tarar, a subsidiary of Codelco, and SQM entered into a joint venture to produce refined lithium, a key material used in EV cars, in Salar de Aticama in Chile. The goal of the partnership over the next five years is to add 300,000 tonnes of Lithium Carbonate Equivalent (LCE) annually, only through efficiency improvements and not resource extraction.
In July 2025, Codelco secured regulatory approval for a new lithium quota, which was thus far one of the biggest hurdles to producing the battery metal. Chile’s nuclear energy regulator CCHEN approved the extraction of 2.5 million metric tons of lithium metal equivalent (LME) through the partnership from 2031 to 2060.
6. MP Materials Corp. (NYSE:MP)
Number of Hedge Fund Holders: 40
Market Cap: $11.07 billion
MP Materials Corp. (NYSE:MP) is one of the best electric vehicle supply chain stocks to buy right now. On September 2, DA Davidson maintained its Buy rating on rare earth mining company MP Materials Corp. (NYSE:MP), while increasing its 12-month price target from $32 to $82. As of September 5, the stock was trading at $62.75, giving it an implied upside of 30.68%.
The firm cited the company’s Q2 results, including the announcement of the Department of Defense agreement, which includes a floor price deal for all NdPr products. NdPr is a blend of neodymium (Nd) and praseodymium (Pr). These are 2 rare earth materials. NdPr is MP Materials’ key product and is one of the most strategically significant materials in the modern electrification economy. DA Davidson added that the NdPr output continues to increase gradually, with the output near a record level.
The company reported a 283% jump in NdPr revenue in Q2 2025, driven by a 226% increase in sales volume and higher prices. MP Materials said that it has halted sales to China in order to focus on building a U.S. rare earth supply chain. Rising NdPr output and pricing are expected to boost future revenues, reinforcing its strategic role in the domestic EV and defense industries.
Wall Street analysts expect the company’s revenue to grow at an average annual compounded rate of 36.13% over the next five years, and they expect the company to be profitable by next year.
5. Aptiv PLC (NYSE:APTV)
Number of Hedge Fund Holders: 40
Market Cap: $17.46 billion
Aptiv PLC (NYSE:APTV) is one of the best electric vehicle supply chain stocks to buy right now. On September 3, Baird analyst Luke Junk maintained his Outperform rating on Aptiv PLC (NYSE:APTV), while increasing his 12-month price target from $84 to $97. That is an implied upside of 20.91% based on the market price of $80.22 on September 5.
Junk said that he adjusted his price targets in the vehicle technology and mobility group to reflect a positive stance on cyclical names. The analyst is increasingly bullish on the group, citing “less bad” auto trends, sector rotation potential, and “undemanding” valuations.
Aptiv, which provides electrical architecture and software systems that enable EVs to function efficiently, is trading at a forward P/E of 17.14x, which is reasonable as analysts expect revenue to grow by an average of 8.87% on a compounded annual basis over the next 5 years.
At the recent J.P. Morgan Auto Conference, Aptiv said that it is focused on reducing dependency on certain markets. Additionally, the company is working on improving real-time visibility and control.
4. BorgWarner Inc. (NYSE:BWA)
Number of Hedge Fund Holders: 43
Market Cap: $9.53 billion
BorgWarner Inc. (NYSE:BWA) is one of the best electric vehicle supply chain stocks to buy right now. On September 3, Baird upgraded BorgWarner Inc. (NYSE:BWA) from Neutral to Outperform while increasing its 12-month price target from $41 to $52, implying an 18.1% upside from the current level of $44.03 at the end of the trading session of September 5.
The firm cited the company’s cyclical exposure and favorable leverage to hybrid vehicles. Baird also noted the company’s consistent execution, which it said was also a positive.
BorgWarner, which designs and manufactures essential EV systems and components, posted a strong Q2 2025, highlighted by a 31% surge in light vehicle eProduct sales and continued new business wins. While the company reported flat overall organic sales, net margin rose to 6.16%, compared to 4.47% in the previous quarter, despite tariff headwinds.
The company said that it secured multiple foundational and EV-related product awards, including those for turbochargers and electric inverters. BorgWarner remains committed to strategic M&A with strict financial discipline and sees continued global demand for its powertrain technologies across EV, hybrid, and combustion platforms.
The stock is trading at a reasonable forward P/E of 11.14x, and is expected to see solid, if not robust growth over the next few years, which supports Baird’s upgrade.
3. DuPont de Nemours, Inc. (NYSE:DD)
Number of Hedge Fund Holders: 49
Market Cap: $32.58 billion
DuPont de Nemours, Inc. (NYSE:DD) is one of the best electric vehicle supply chain stocks to buy right now. On September 2, Mizuho reiterated the Outperform rating for DuPont de Nemours, Inc. (NYSE:DD), while increasing the 12-month price target from $85 to $90. That implies a 15.63% upside from the price of $77.82 as of September 5.
The rest of Wall Street is also similarly bullish, with the average 12-month implied upside of 18.05% on the company, which supplies specialty polymers, battery separator materials, and electronic-grade materials to EV makers. 14 of the 17 brokerages that follow the stock rate it a “buy” or higher, and 3 think it’s a “hold”.
Mizuho updated its sum-of-the-parts valuation after the sale of DuPont’s fabric business for $1.83 billion. The firm noted that the rest of the company should be less cyclical while having a higher free cash flow conversion.
To mitigate the impact of tariffs, DuPont is adjusting its supply chain, moving products strategically to avoid tariffs and applying surcharges where needed. This approach has helped reduce the overall tariff-related cost burden significantly. The company remains focused on operational efficiency and is positioning itself for long-term growth through innovation and strategic restructuring.
2. On Semiconductor Corporation (NASDAQ:ON)
Number of Hedge Fund Holders: 50
Market Cap: $20.08 billion
On Semiconductor Corporation (NASDAQ:ON) is one of the best electric vehicle supply chain stocks to buy right now. On September 5, BofA maintained its Neutral rating on On Semiconductor Corporation (NASDAQ:ON), while reducing its 12-month target on the company to $52 from $56. As of September 5, the stock was trading at $49.11, giving it an implied upside of 14.02%. However, the other Wall Street analysts are more bullish on the stock. The average Wall Street 12-month implied upside is 17.06%.
On Semiconductor, which provides advanced semiconductor tech essential for EVs, is deepening its presence in the market. The company is supporting automakers like Xiaomi with silicon carbide (SiC) technology to extend charge range and improve performance.
On Semi’s EliteSiC solutions are now integrated into some of Xiaomi electric SUVs. It also has a partnership with Schaeffler, focusing on next-gen traction inverters for hybrid cars. The company saw a 4% year-over-year decrease in automotive revenue in Q2 of 2025, which accounts for a significant percentage of the company’s overall revenue. However, the company expects demand for the segment to rebound with ongoing EV revamps.
1. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 115
Market Cap: $1.13 trillion
Tesla, Inc. (NASDAQ:TSLA) is one of the best electric vehicle supply chain stocks to buy right now. Tesla, Inc. (NASDAQ:TSLA)’s new-car registrations in the U.K. went up by 7.63% in August. Another group, New AutoMotive, said sales of battery electric vehicles (BEVs) rose by 20% in August, even though total new car sales in the U.K. fell by 2% compared to last year.
However, this is in stark contrast to Tesla’s global sales. During Q2 of 2025, Tesla delivered 384,122 vehicles. That’s a 13.5% drop year-over-year. The company is facing more competition, especially in big markets like China, and demand has slowed down.
To counter the lower sales, the company recently released its Model Y L in China. Tesla is also working on its other segments. During a recent earnings call, CEO Elon Musk said Tesla Energy is growing fast. He also talked about how important it is to get key materials like graphite. Musk said just making batteries in the U.S. isn’t enough; Tesla needs to make sure it can get the raw materials, too. The company is now building more partnerships with suppliers back home.
Even with the recent drop in sales, Tesla’s stock is still priced very high. It has a forward P/E ratio of 248.48, which shows that investors expect the company to grow a lot in the future. A lot of that hope comes from new things Tesla is working on, like self-driving cars and robots. Wall Street thinks Tesla’s revenue could grow more than 31% every year for the next five years.
While we acknowledge the potential of TSLA to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TSLA and that has 100x upside potential, check out our report about this cheapest AI stock.
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